International Monetary Fund (IMF) head Christine Lagarde reassured German Finance Minister Wolfgang Schäuble this week that the IMF plans to remain constructively engaged in talks about aid for Greece, a spokesman for Schäuble said earlier today (20 January).

Dutch Prime Minister Mark Rutte and former European Parliament President Martin Schulz clashed over the strategy to relaunch the Union, illustrating the deep division at Europe’s helm in front of the global audience of the World Economic Forum.

Threatened by unemployment and stagnant wages, the middle class is increasingly feeling the pinch and falling prey to populism, as shown in recent elections and the Brexit vote, international and business leaders in Davos warned.

Martin Schulz confirmed that he will attend the World Economic Forum in Davos next week (17-20 January), where he will address the global elite hours after he steps down as European Parliament president.

Few leaders from Europe's largest countries and EU institutions will attend the elite gathering in Davos next week (17-20 January), despite the fact that the threat of populism is expected to be high on the agenda.

Western democracies will be further challenged next year, as populist parties are expected to make gains in Europe, while China and Russia increasingly set the global agenda, taking advantage of a US withdrawal.